The pandemic has changed how the world does business. While the trend for remote work was already on a steady upward climb, lockdowns and restrictions forced a monumental shift to a work-from-home format for many industries. This dramatic structural change could have future implications that are difficult to identify in this present moment. Many of these businesses were ill-prepared for such a move, leaving them vulnerable to data breaches and their consequences due to knowledge gaps, a lack of security, and insufficient cyber liability insurance coverage.
What Are the Biggest Cybersecurity Vulnerabilities?
A national emergency is a prime opportunity for cybercriminals, and the pandemic is a gold mine, given its global reach. Governments and businesses are stressed and stretched to their limits, focusing on the most immediate needs, with few resources to devote to hidden or indirect impacts. Criminals take advantage of these conditions.
The rapid change to a work-from-home format often means that companies have not sufficiently addressed the cybersecurity issues that arise when networks move from a centralized location to decentralized distribution. Home computers often do not have the same security measures installed as those in a business environment where dedicated IT teams ensure system security. The need for video conferencing and the incorporation of new software systems to meet this need are other prominent risks in today’s cyber landscape.
What Can You Do To Protect Yourself?
There are measures that every business can take right now to reduce the risk of a cyberattack. One of the first steps is to make sure your cyber and data insurance policies are up-to-date and that they are sufficient to meet your company’s needs based on current system structures. Your company should also:
- Consider the safety of your cloud services.
- Train and educate employees on cybersecurity and home office protocols.
- Utilize a virtual private network configured for your business.
- Beef up cybersecurity to include measures for teleconferencing software.
- Identify risks associated with third-party exposures and plan for how to reduce those risks.
- Incorporate strong policies and procedures for personal device usage.
What Does a Cyber Insurance Policy Cover?
Your general liability insurance does not cover any losses related to cyberattacks. You need cyber liability insurance to protect your business from data and information breaches. Not every business has the same exposures and vulnerabilities, so it is important to choose a company that works with you to create a custom policy that addresses your company’s specific needs. However, there are some coverages that are essential in any cyber and data insurance policy.
A good policy should include, at minimum:
- Coverage for investigations into cyberattacks to determine their source and cause
- Restoration and replacement costs for data losses
- Recovery of profits lost and extra expenses incurred because of a breach
Beyond these essentials, additional protection is needed if your company operations involve customers, supply-chain, or other third-party contacts. Make sure you work with an agent to get the coverage your company needs.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.